B. Socio Cultural Dimension
Although, any form of bribery or showing any political favors is considered unethical but not illegal. Federal Express can be proven to have engaged in both activities. FedEx has been known to use its own corporate jet planes to accommodate members of the house and the senate. FedEx has also graciously contributed large amount of money to senators and representatives of both democrats and republicans.
- Technological Dimension
FedEx developed a technological system where they strategically placed central hubs where packages and other deliverables can be sent out locally, thus crating a new express market.
II. Task Environment
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Competitors
FedEx main rival is UPS. UPS employees are unionized, including 104,
000 full-time and 151,000 part-time employees, as well as 2,000 pilots.
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Labor-Unions
The Teamsters and the United Automobile Workers are FedEx main rivals
concerning unionizing their employees.
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Regulators
The National Relations Board lobbied to put the drivers under the NLRA, arguing that the majority of FedEx employees have nothing to do with airplanes. The National Mediation Board was also involved in disputing FedEx’s case. Other regulators such as the Surface Transportation Board and the Federal Aviation Board were also involved.
Internal Environment
A. Board of Directors
CEO Smith was reported by two Washington Posts reporters that he made a comment about being smart to contribute FedEx’s revenue towards continual solicitation from both parties.
B. Employees
Although FedEx’s 3,000 pilots are in a union, the remaining 14,000 employees don’t have a union to protect them. Their drivers are paid $4.oo less than UPS drivers.
C. Organizational Culture
FedEx has stuck to its value in offering fast and reliable delivery in 211 countries.
Strategic Response
Federal Express Corp. main concern was keeping their workers unionized. They then put forth their lobbying skilled firms to go to Washington. In 1995 and 1996 its Political Action Committee gave “$948,000 to senators and representatives” to both political parties. Federal Express Corp. itself gave “$400,000 in soft money to the Republicans National Committee and $250,000 to the Democratic Senatorial Campaign Committee.” Another critical strategic response FedEx made was picking up the slack from UPS when their employees went on strike. In turn, FedEx gave 10% bonuses to their employees for putting in long hours. This acknowledgement let their employees know that of their hard work does not go unnoticed.
Social Responsibility
Federal Express Corp. knew it had a social responsibility. That is why when South Carolina was in a drought, FedEx immediately responded and provided planes to transport loads of hay to prevent cattle from starving. FedEx also maintained its social responsibility to its employees by providing employee-friendly policies, including a Guaranteed Fair Treatment program where any employee can go directly to the CEO Smith to appeal any decisions made by management. Smith makes sure that he makes time for at least four hours for any concerns that may arise. Federal Express Corp. has definitely provided sufficient accommodations for its employees to ensure them that a union is not necessary to protect their rights and well being.
